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October 25, 2006

Cards At Vending Machines Consumer Acceptance?

Analysis of: Networks Begin to Make a Case for Cards at Vending Machines | www.digitaltransactions.net
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Stephen Lattanzio, AVP ATM Network ManagerStephen Lattanzio
AVP ATM Network Manager, Sun National Bank (inc)
Implications: While card processors look to increase network transactions via vending machines, the question remains regarding consumer acceptance.

Will using cards at vending machines be more trouble than it is worth to the consumer?

Analysis: While there is much hype to the ability to retrofit vending machines for debit; credit and contactless payments as well as cash at these machines, the question remains as to the viability and acceptance by the consumer.  In some cases, (consumer does not have the small bills or change to purchase an item) it may be convenient to do this type of transaction, there are other considerations that should also be addressed:

Like ATMs, will there be warning signs advising customers to be aware of their surroundings?

Will would be thieves now hang around remote or out of the way vending machines in hope of getting someone's card?

Safety and security of transactions? How long will the transaction take to complete?

Is it more convenient to put in a card to do a transaction rather than put in the cash?

While it appears that there is a factor of convenience in some cases, the overall test will be the actual acceptance by the consumer.  This will be the key.


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